Verizon is shifting gears after a recent policy change sparked backlash from consumers. 

Last week, Verizon quietly updated its website to reveal that it has tweaked its device unlock policy for postpaid phone customers.

The policy currently states that postpaid phones purchased from Verizon must be paid in full to be automatically unlocked, meaning customers will be unable to switch to another carrier with that phone if it has an unpaid balance. 

Also, if a customer pays off the phone online or in the My Verizon App, they have to wait 35 days for the device to be unlocked. 

This delay is also triggered if a customer uses a nonsecure payment method such as a Verizon gift card, paper check, or magnetic stripe swipe to purchase or pay off the phone. It is also important to note that for business customers, bill credits are also considered nonsecure payment methods.

Verizon claims that this 35-day waiting period will help deter fraud. Customers can avoid it if they use a secure payment method such as a credit card with an EMV chip, cash, or contactless payment to pay off the balance of the device; however, the catch is that it has to be done at a local Verizon store.

Enrolling in automatic monthly payments on a device plan is another way customers can avoid this delay.  

Verizon claims it updated its device unlock policy on Jan. 27, but the change wasn’t live on its website until Feb. 11, suggesting that these new rules would apply to transactions that occurred before the policy change was posted. 

Verizon is responding to backlash over its updated device unlock policy for postpaid customers.

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Verizon faces criticism from consumers

The updated policy sparked backlash from consumers, who took to social media platform Reddit to express frustration with Verizon. 

“How is this legal? I understand (but don’t like) that phones have to be locked into paid off like the other carriers, but once you make the payment for postpaid waiting another 35 days is insane unless you do it at a corporate store. I’m sure COR employees will love having to do this more often,” commented one consumer in a Reddit post. 

“This is so anti-consumer, it’s upsetting. If there is a lot of fraud with gift cards, sure, maybe I can understand a delay for that method. But if you pay off your phone with your credit card online? You should not be held hostage for another 35 days,” wrote another.

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“Verizon is just pissing me off more and more each week. This will probably be the final nail in the coffin for our business account,” wrote a Verizon customer. 

Roger Entner, a lead analyst at Recon Analytics who has followed Verizon for years, also agreed that Verizon’s updated policy isn’t very appealing to consumers.

“If the phone is being paid off, it should be yours and not in 35 days,” said Entner in a statement to PCMag. “I think they’re overshooting the target here.”

Verizon responds to consumer backlash over device unlock policy 

After facing backlash, Verizon is now acknowledging that the change is a “pain point” for customers, according to a recent report from Android Authority.

In a statement to the news outlet, Verizon said the policy change aims solely to prevent fraud. 

“We’ve already rolled out immediate unlocking for customers who pay at our corporate stores or use automated payment methods, since those systems can validate transactions in real-time,” said Verizon. “For other channels such as our app or authorized retailers, the 35-day window is strictly focused on fraud prevention, ensuring payments are fully cleared. 

However, the company plans to allow immediate device unlocking for all payment methods “really soon.”

“That said, we recognize this is a pain point for our customers and our goal is to provide an immediate device unlock for all payment methods really soon,” it said. “Our teams are diligently working to bridge that gap and we’ll update the website/policy when this is possible.”

Verizon also clarified that customers who purchased new devices before the updated terms were made public online on Feb. 11 were aware of the policy change, which went into effect on Jan. 27.

“Regarding the website update timing, the new device unlocking policy went into effect on January 27th,” said Verizon. “Customers purchasing or upgrading from that date were (and are being) presented with the full terms of the new policy at their point of sale. We’ll make sure all our public-facing info is also clear and consistent across channels.”

Why Verizon added new device unlock rules

Verizon began adjusting its device unlock policies after receiving approval from the Federal Communications Commission last month to waive a rule requiring it to automatically unlock devices it sells to customers after 60 days.

The carrier was first required to adhere to the rule in 2008, after it acquired licenses to use 700 MHz spectrum. In 2021, the requirement was reaffirmed when Verizon purchased TracFone.

Verizon claimed that automatically unlocking phones after 60 days contributed to “device fraud” and made phones less affordable for low-income consumers. 

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The FCC confirmed that Verizon experienced a spike in fraud after the rule took effect, claiming that its stolen handsets have even been resold on the dark web at elevated prices in several countries.

Days after receiving the FCC’s green light to have the rule waived, Verizon updated its device unlock policy for its prepaid brands, a change that took effect on Jan. 20. 

The policy now states that devices purchased from StraightTalk, Total Wireless, Visible and Tracfone are now only unlocked upon request after 365 days of paid and active service, and if certain conditions are met. 

Verizon battles elevated phone customer losses

Verizon’s device unlock policy changes also come at a time when it is struggling to retain loyal customers. 

During the fourth quarter of 2025, while Verizon added 616,000 new postpaid phone customers, the company saw its postpaid phone churn, the percentage of postpaid phone customers who canceled their service, reach 0.95%, according to its most recent earnings report. This is higher than the 0.88% churn it reported for the same quarter in 2024. 

The loss of customers follows several price increases last year, a move Verizon CEO Dan Schulman said mainly led to elevated churn during the quarter, along with heightened competition. 

“It’s price increases without corresponding value,” said Schulman during an earnings call last month. “That just irritates some customers, and we’ve seen the churn rise as a result of that, and we’ve stopped doing that, and we’re going to start adding value to it.”

Many consumers nationwide have been exploring nontraditional options for phone services as they battle higher prices. 

Mobile virtual network operators (MVNOs), which offer phone plans at prices usually lower than those of traditional carriers, have become a popular option, according to a survey from WhistleOut last year.

How many Americans say they’ll switch phone carriers:

  • Roughly 42% of Verizon, T-Mobile and AT&T customers have seen their phone bills rise in the past year, which is 7% higher than average. 
  • These customers spend $76 per month on average for one phone line, while MVNO customers spend $44 per month. 
  • Additionally, 58% of these customers are considering switching to a different phone carrier as prices rise, and 34% said they may switch to an MVNO within the next year.
  • Verizon risks losing 84.7 million customers due to high prices.
    Source: WhistleOut

“As wireless customers have started seeing the potential savings of switching to an MVNO, millions of them have left major carriers behind,” wrote Max McCaskill,  senior staff writer at WhistleOut, in the survey.

“If prices continue to increase, that number will only grow,” he continued. “Based on our survey, the Big 3 carriers (Verizon, T-Mobile and AT&T) are at risk of losing 230 million customers combined because of high mobile plan pricing.”

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